According to IMARC Group’s recent report titled “Saudi Arabia Residential Real Estate Market Report by Type (Condominiums and Apartments, Villas and Landed Houses), and Region 2025-2033,” Saudi Arabia’s residential real estate market is on a strong upward trajectory, with significant growth expected in the coming years. The report offers a detailed analysis of market trends, segmentations, and projections for the period from 2025 to 2033.
The Saudi residential real estate market was valued at USD 71.8 billion in 2024, with expectations to grow to USD 130.8 billion by 2033. This growth equates to a compound annual growth rate (CAGR) of 6.9% from 2025 to 2033. As the region experiences rapid urbanization and a booming population, the residential market continues to expand, driven by both domestic and international investments.
The Saudi residential real estate sector is undergoing a transformation, primarily driven by the country’s urbanization processes, growing population, and an ongoing government initiative to increase homeownership. With an increasing number of young people entering the workforce and a demand for affordable yet modern living spaces, the market is evolving to meet these new needs. Developers are responding by introducing green and smart housing solutions that include energy-efficient designs and cutting-edge technologies for home automation.
There is also a rise in the popularity of mixed-use developments and gated communities, which offer security, convenience, and enhanced lifestyle options. These developments are becoming increasingly attractive to residents, with many opting for areas that provide a combination of residential, commercial, and recreational facilities.
In parallel, the luxury real estate market in Saudi Arabia is gaining momentum. High-end properties in prime locations are attracting affluent buyers, both locally and internationally. As the country’s economic situation improves, aided by ongoing infrastructure developments, the demand for high-end real estate continues to grow. Interestingly, there is also increased attention on smart city projects, which are expected to play a significant role in shaping the future of urban living in the region.
Technology-enabled and sustainable housing options are redefining purchasing preferences in the Saudi market. As energy-efficient homes become more popular, integrating smart technologies that reduce energy consumption is increasingly seen as a key differentiator. These technological advancements are appealing to environmentally conscious buyers and are set to shape future real estate trends in the kingdom.
Government policies focused on enhancing affordability and accessibility are expected to drive further growth in the residential real estate sector. With expanded mortgage options and cash incentives for homebuyers, homeownership is becoming more achievable for a broader demographic. At the same time, mega infrastructure projects and smart city developments continue to modernize the urban landscape, attracting both local and foreign investment.
The report provides a detailed segmentation of the Saudi residential real estate market by property types, including condominiums, apartments, villas, and landed houses. The market’s share and growth forecasts for each segment are outlined, with a focus on high-demand areas like Riyadh, Jeddah, and the Eastern Province. These regions are expected to witness significant development as they continue to attract investments in residential, commercial, and mixed-use projects.
The Saudi residential real estate market is set to remain one of the most dynamic sectors in the country’s economy. With favorable government policies, increasing demand for modern housing, and a shift toward sustainability and technological innovation, the future of residential real estate in Saudi Arabia looks promising. For developers, investors, and homebuyers, the next decade presents a wealth of opportunities as the sector continues to grow and modernize in response to changing demographics and consumer needs.
